Why should I buy in Austria?
Austria is not just a ski desitnation
Yes, we know it is famous for its Alps! But, leaving aside ski-ing for a moment, have you ever stopped to consider what is underneath all that white stuff that people skim over at great speed?
Well when the snow melts, out come the meadow flowers and the mountain slopes are turned into a glorious canvas of yellow and green stretching for as far as the eye can see. The Spring days are warm and the streams gush crystal clear water as the mountain snows rapidly melt.
Then there is summer in the mountains. No, not cold as you would think; temperatures regularly reach the high 80s so, swimming in the lakes and sunbathing are just as normal as on the Spanish costas! The cable cars are filled with walkers and groups wanting to experience the heady atmosphere of high altitude and the views that are afforded across the alpine mountain ranges.
Following behind these hot summers come the golden autumns, when the leaves on the trees turn to shades of gold and burnished copper creating picture postcard scenes. And of course, we have Winter, when the snow starts to fall and the land goes to sleep.
So then what is there to look forward to? A white christmas of course! The fantastic Christ Kindel Markets in all large towns and cities. No plastic decorations here! There is very little commercialism to be found and Christmas is spent enjoying the event and not the gaudily wrapped presents!
OK, now comes the superb ski-season with some of the best mountain pistes in the world with excellent skil areas to suit all standards. From the beautiful Voralberg in the west to the vast Sports world Amade in the central alps.
Added to all this you have the Culture and music festivals all year. Composers such as Mozart and Strauss are the best known but there are many more. So, what are you waiting for? Look inside and find out what is on offer in Austria.
Austria is an all year round location. You have the Warm Spring weather, Hot Summers, Golden Autumns and of course the magical winter wonderland of white at Christmas. It is not expensive, nor just a ski destination as you may have been led to believe. As it gets very hot in the summer and you can swim in the lakes. Diesel is usually about 90p a litre, but like the rest of Europe is dependent on what happens in the middle east! In the supermarket, bottles of good wine cost from £2 to £3. Beer is about 70 cents(50p)for a half litre bottle. Food is a little cheaper, but of course there will always be imported items that are more expensive.
Property for sale in Austria is still reasonably priced and it certainly makes for a good investment, particularly as you can make good returns on your money by renting your property for holidays. Austria boasts some of the best ski areas in Europe and as such these areas are popular with foreign buyers, especially as holiday homes.
It is certainly not an expensive investment, as a studio apartment can start from as little as £30,000 or less. It is a clean, safe country in which to live or have an investment home. There is little crime in the countryside areas. The hotels, restaurants and tourist attractions are invariably spotless. The lakes and rivers are maintained at "drinking water" quality and there is no litter anywhere. Strict recycling laws are in place to keep the environment safe. Public transport is excellent; the buses are regular and clean, non smoking and air conditioned. Transport is properly 'connected' - the buses run in conjunction with the railway stations and airports etc. Austria is rich in music and culture. Mozart & Strauss were both born here, but you will find that Austrians manage to happily mix modern pop and rock music alongside these famous composers. There is skiing on the doorstep as there are 100's or should that be 1,000's of winter sport resorts!
Benefit-cost analysis
Everyone dreams of owning their own holiday home, whether it be a chalet or an apartment, regardless if it’s in Austria, Italy, Spain or Bavaria. So we have put together some background information to show you how affordable such a holiday home actually is, and to help you make your dream a reality.
What are the benefits of being the owner of your own holiday home?
You may be interested to know that closer inspection shows that the lion’s share of the costs attached to a holiday home are born either by the visitors or by the inland revenue and not by the owner of the property.
The rental income and the tax benefits cover approx. 65% of the necessary capital. The actual proportion paid by the owner is approx. 35% or maybe even less.
If you compare the financial outlay with other forms of savings such as investment funds or life insurance, it will soon become clear how profitable owning a holiday home can be.
To sum up: Purchasing a holiday home is a viable investment option that offers excellent returns on little initial capital.
Tax relief
The buyer can take advantage of tax benefits resulting from commercial use of the property: the buyer is entitled to claim back the input VAT that was paid at the time of purchase on a new-build holiday home in the year of acquisition. A further relevant accrual of assets results from income tax refunds. Any expenses associated with the construction or financing of a holiday home may be recorded in the accounts in the year of purchase or in the year of completion. Furthermore, any expenses connected with renting out the property will also reduce your tax load. If you wish to discuss your financing options or requirements, or if we can be of any help whatsoever, please do not hesitate to contact us. Just send us an email.
It is certainly not an expensive investment, as a studio apartment can start from as little as £30,000 or less. It is a clean, safe country in which to live or have an investment home. There is little crime in the countryside areas. The hotels, restaurants and tourist attractions are invariably spotless. The lakes and rivers are maintained at "drinking water" quality and there is no litter anywhere. Strict recycling laws are in place to keep the environment safe. Public transport is excellent; the buses are regular and clean, non smoking and air conditioned. Transport is properly 'connected' - the buses run in conjunction with the railway stations and airports etc. Austria is rich in music and culture. Mozart & Strauss were both born here, but you will find that Austrians manage to happily mix modern pop and rock music alongside these famous composers. There is skiing on the doorstep as there are 100's or should that be 1,000's of winter sport resorts!
Benefit-cost analysis
Everyone dreams of owning their own holiday home, whether it be a chalet or an apartment, regardless if it’s in Austria, Italy, Spain or Bavaria. So we have put together some background information to show you how affordable such a holiday home actually is, and to help you make your dream a reality.
What are the benefits of being the owner of your own holiday home?
- The holiday home as a provision for one’s old age
The rental income provides you with an additional pension which will help you to enjoy your retirement to the full. - Use your holiday home to claim tax relief
- Purchasing a holiday home is a safe investment
Property is a crisis-proof investment and not dependent on fluctuations in inflation or speculation like stocks and shares are.
- Investing in a holiday home promises excellent capital appreciation and an excellent return on your investment
Holiday homes that are situated in a prime location have appreciation value potential which other kinds of property or life insurance cannot offer you.
You may be interested to know that closer inspection shows that the lion’s share of the costs attached to a holiday home are born either by the visitors or by the inland revenue and not by the owner of the property.
The rental income and the tax benefits cover approx. 65% of the necessary capital. The actual proportion paid by the owner is approx. 35% or maybe even less.
If you compare the financial outlay with other forms of savings such as investment funds or life insurance, it will soon become clear how profitable owning a holiday home can be.
To sum up: Purchasing a holiday home is a viable investment option that offers excellent returns on little initial capital.
Tax relief
The buyer can take advantage of tax benefits resulting from commercial use of the property: the buyer is entitled to claim back the input VAT that was paid at the time of purchase on a new-build holiday home in the year of acquisition. A further relevant accrual of assets results from income tax refunds. Any expenses associated with the construction or financing of a holiday home may be recorded in the accounts in the year of purchase or in the year of completion. Furthermore, any expenses connected with renting out the property will also reduce your tax load. If you wish to discuss your financing options or requirements, or if we can be of any help whatsoever, please do not hesitate to contact us. Just send us an email.
Voted one of the safest Countries
Austria was voted 3rd safest/secure country in the World for people and property. As a matter of interest, the UK was 12th.
Once you have found the property of your dreams, be it a small studio apartment or a 6 bed ski chalet on a mountain top, the next step is to make an offer. This can be difficult in another language and culture, so it is a good idea to take some advice from the estate agent or if you are buying via one of the large Banks, their property department. They are in a position to know what the seller might be willing to accept. You need to also discuss anything else such as furniture or fittings that might be included in the sale. It is quite common for the furniture to be included when buying a holiday apartment. This value of furniture would be kept separate for stamp duty purposes.
Next you make an offer. This is put in writing and sent to the seller. The agent will do this offer document for you. On it will be itemised all the costs involved in buying the property. Such as legal fees, land registry costs, agents fees, stamp duty etc This usually amounts to up to 10% of the purchase price and is an additional cost to the property price. It is wise to keep this in mind when viewing properties. So, if you are buying a property for 100,000 euros you need to allow an extra 10,000 euros to cover all the costs involved.
The agent sends the offer document to the seller. If the seller accepts your offer they would countersign it. The seller is given a fixed period to accept or decline your offer price. Once the document is countersigned, you can take it that the property is yours! But do make sure you have your finance in place before you make a legal offer in writing. A completion date is agreed between the seller and buyer for the purchase, then you must send the total amount including all the costs, to the Solicitor. It is best to do this a few weeks before completion. This will give time in case of any banking delays. If you would like to set up a currency account for money transfer then click on the Free currency account at the bottom of the property page. You then have access to all the information that you need to make sure you get the best exchange rate and also minimise banking costs. This information is a guide only and is not comprehensive. You are advised to take legal advice before making a purchase.
Do I need a Valuation?
Properties here are built to the highest standards and valuations are not usual, because no-one in Austria is allowed to build a house except a master builder. There are no cowboy builders, so you can generally assume that the property is in good structural order and rely on the advice of the agent. You can request a survey known as a Gutachten, if you wish. It is carried out by a qualified person and is a legally binding document in Austria. The banks and mortgage providers have a 'Property Price Book' that they work from. This gives them a pretty good idea it the property is worth the price you are paying.
Can I get a Mortgage for Austrian property?
It is not a good idea to borrow money in the UK, even though some of the major high street banks offer mortgages. Those who have tried have usually had problems and the cost of sending a surveyor/valuer out to see the property will cost a lot of money. The Austrian Banks will send one of their managers or mortgage advisors, free of charge to do a valuation.
Austrian banks are keen to lend but do not expect the 95% mortgages of the UK. A 40% deposit is usually required, especially when lending to foreign residents. This is understandable. The interest rates are around 4.75% as at January 2008 and a 10 -15 year term is typical. But you can get up to 25 year term, as you would here in the UK. At the moment one of the local banks has a promotion, offering mortages at 2.75% You generally need to have 40% as a deposit.
We have an Experienced Austrian Mortgage & Financial Advisor on our team, who can advise you about Mortages and buying property in Austria.He will be able to find you a few offers to choose from, whcih keeps the choice in your hands and not getting sold a mortgage that is unsuitable. Our service is free and you are under no obligations. We are here to help make your purchase in Austria as simple as possible.
Please email us if you would like to know more. sales@amazingaustria.com
What about purchase costs?
The average total cost to buy a property usually works out at approximately 10% of the purchase price, made up of the following:
Property transfer tax of 3.5%
Notary fees and estate agent commission around 3-4%.
Property registration around 1%
Stamp duty 0.5-1%
Land registry fees of approximately £300 to £450
Property transfer tax of 3.5%
Notary fees and estate agent commission around 3-4%.
Property registration around 1%
Stamp duty 0.5-1%
Land registry fees of approximately £300 to £450
Information in German
| Kaufabwicklung: | |
| 1. | Grunderwerbsteuer 3,5 % |
| 2. | Grundbucheintragungsgebühr 1 % |
| 3. | Kosten der Vertragserrichtung und grundbücherlichen Durchführung nach Tarif des jeweiligen Urkundenerrichters sowie Barauslagen für Beglaubigungen und Stempelgebühren |
| 4. | Eventuell Verfahrenskosten und Verwaltungsabgaben für Grunderwerbsverfahren |
| 5. | Vermittlungsprovision bis EUR 36.336,42 je 4 % von EUR 36.336,43 bis EUR 48.448,49 je EUR 1.453,46 ab EUR 48.448,49 je 3 % Von beiden Auftraggebern (Verkäufer und Käufer) jeweils zzgl. 20 % USt. |
| 6. | Finanzierungskosten Vergebührung des Darlehensvertrages 0,8 % Grundbucheintragungsgebühr 1,2 % Allgemeine Rangordnung für die Verpfändung 0,6 % Kosten der Errichtung der Schuldurkunde Barauslagen für Beglaubigung und Stempelgebühr laut Tarif |
What about Estate Agents Fees?
These are controlled by law. It will typically cost you up to 3% plus vat. Sometimes you can negotiate if the property is a high value property.
What costs are there after buying an apartment?
There are Service charges/maintenance fees for an apartment:
These may vary according to the size of the property you purchase. However these fees are included in the running costs (overheads) of the apartment and include heating water, rubbish collection, caretakers fees, general water, any exterior repairs or decoration that may be necessary, the building´s insurance and the garden maintenance. It is a monthly payment.
What about furnishing my property?
There are a few large department style stores in Salzburg and also nearby, that sell everything you could posibly need to furnish a home. And the prices are in some cases cheaper than in UK. I was at the Large 'Kika' store in Eugendorf a few days ago and some of their offers were incredible. A double bed for 69 Euro!!! Granted it did not include the mattress but then you can buy a mattress for 99 Euro. We will be launching a buyers tips & ADvice page shortly to cover this specific subject of shopping.
Letting Your Property
If you are considering buying to let, there are lots of superb holiday apartments at very reasonable prices on good developments. These have the benefit of no freezing-up problems in winter as common central heating is provided in most apartment buildings inclusive with your monthly building management cost. The rental market can be very good because of the all year attraction. But be aware that the local Gemeinde (Town Council) will want their tourist tax to cover the cost of additional resources needed in the holiday season. This is currently (2007) 1.15 euros per person per night. About 8 euros for a week long stay. We at Amazing Austria are here to help you as much as possible to find a property in Austria, suited to your criteria and budget and also with renting the property if you do not want to do this yourself.
Although Austria is a safe place to invest, you should find out exactly what is involved for any particular purchase before entering into any contracts. Our associates in Austria will help you as much as possible if you have questions about an Austrian property, or if they do not have all the answers they will find out for you. So all there is left to say is Happy House hunting!
We do our best to keep all information updated, but this article is intended for general information purposes only as laws and regulations can change. These guidelines are meant for guidance only and describe straightforward purchasing. This information is not meant to replace proper legal advice, which we always advise that you take.
You will find at the bottom of the page a link to get information on Exchange rates and transferring funds overseas for property purchase.
What about currency exchange and transferring money to Austria? Click for info